Croatian International Relations Review

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Dina Tomsic

The increased capacity to process and transmit information,and the associated tradability of services,has led to the globalization of production in both goods and services.Companies are now able to locate the production of individual components and business services in geographically separated locations and to assembly a product in different places,thus taking the leverage of the location advantages each place has to offer, and creating the new borderless market.This article analyzes the new role of the governments and diplomacy provoked by the globalisation impact on all economy sectors,especially on service and market communications industry,and emphasise the power of the international fairs as an instrument of economic and foreign policy.